I live in louisiana and have a tax id number, i have contacted american apparel ad they are asking me for a state redale number. Please tell me how i can get one or if i even do need one. Thanks
you need the number to buy wholesale and avoid paying tax. if you intend to resell to retail customers you have to collect sales tax from them. go to your state division of corporation as a starting point in obtaining one.
I live in Texas and I have my EIN number, but still can not buy from some businesses. They want a state tax number why do I need that I do my sales from home and I don't charge taxes.
To be legal......if you are operating a business (even out of your home) most states require you to become a agent of the government and collect their sales tax on all sales at the retail level the only exemption is if you sell wholesale to someone who will resale the item at retail and at that point collect the sales tax for the state.
Texas may be different but that's how most states work, the down side is that the state can make you pay the sales tax whither you collected it or not if your caught.
A business accountant in your state could give you more precise info than most people here.
thanks Jon, I started out doing this as a hobby, but people began like my work and my husband told me I can't give everything away. Some co-workers encouraged me to do this as a business and I really enjoy this. I don't think I am doing enough to really classify myself as a business yet.
Ruby....I understand I think we all started out that way, so you see that to buy at wholesale you need a state tax id number, but if you do that then you are a business and must collect sales tax/report your sales to the state....it's a catch 22 if you follow me. LOL!
LOL, yea I get ya. I plann to some day boom with this, but for now I guess I have to check into getting it all set up for the future. I started out doing just embroidering and alterations. I had a home embroider machine and upgraded to a commerical and added a heat press and here I am. I guess if I want to play I have to pay...LOL
I have my EIN and live in Virginia. When I tried to purchase something in California I was asked for a state re-sale number and I had no clue what it is/was and told them I'm out of state and they sent the goods to me. I think its specific for each state.
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